Alex Williams (CRD# 2646185), a broker and investment adviser based in New York, has received a pending customer complaint. According...Read More
Jeffrey Schwebach: FINRA Suspends Dell Rapids Financial Advisor
A disciplinary action taken by the Financial Industry Regulatory Authority against former Dell Rapids, South Dakota broker and investment advisor Jeffrey Schwebach (CRD# 1606537) suspended him over allegations he participated in private securities transactions without notifying his member firm or receiving its approval. A former representative of Independent Financial Group, Jeffrey Schwebach was suspended for eight months.
According to a Letter of Acceptance, Waiver and Consent (No. 2018058910001) dated June 2019, Jeffrey Schwebach was registered with Independent Financial Group when, between October 2016 and October 2017, he solicited investors to invest in Woodbridge Group of Companies promissory notes. FINRA describes the Woodbridge Group of Companies as “a purported real estate investment fund.” The findings state he sold 17 investors, including 13 Independent Financial Group customers, a total of $895,000 in the Woodbridge notes, for which he received commissions of $19,534. The findings go on to state that he did not seek his firm’s approval to sell the notes, and further that that the firm’s supervisory procedures forbade the sale of promissory notes. He allegedly disclosed to the firm that he was participating in “Woodbridge,” an outside business activity “involving first position mortgages,” but did not identify the private securities transactions. FINRA states further that he made false attestations on three firm compliance questionnaires that he had not participated in private securities transactions or offered unapproved products. FINRA found these activities to constitute violations of FINRA Rules 3280 and 2010. As a result of the foregoing alleged conduct, he was suspended from association with any FINRA member in any capacity for eight months. He was also ordered to pay disgorgement of the $19,354 in commissions he received, plus interest.
Jeffrey Schwebach is currently not registered as a broker or investment advisor. His employment history includes Independent Financial Group in Dell Rapids, South Dakota; Allegiant Securities in Miami, Florida; Princor Financial Services Corporation in Dell Rapids, South Dakota; Quest Capital Markets in Lake Forest, California; and Pruco Securities Corporation in Newark, New Jersey. He currently holds zero state licenses and has passed five securities industry qualification examinations.